RBI’s Revised guidelines – Appointment of Agents / Franchisees by Authorised Dealer Category-I banks, Authorised Dealer Category-II and Full Fledged Money Changers.


Over the years, there has been a tremendous change, in the money changing activities undertaken by the agents / franchisees of AD Category-I banks / AD Category II / FFMCs ( Full Fledged Money Changers)

 The agency/franchisee model is partly responsible for this change and issuance of Anti Money Laundering (AML) Guidelines on money changing activities, RBI felt that there is a need to increase the control over the franchisees by the franchisers.

 Accordingly, today RBI has issued revised guidelines to streamline the activities of Agents / Franchisees appointed by Authorised Dealer Category-I banks, Authorised Dealer Category-II and Full Fledged Money Changers.

 The RBI notification can be accessed @

 http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6743&Mode=0

The notification is addressed to ‘All Authorised Persons in Foreign Exchange’

The notification comes into immediate effect for new franchisees and for existing franchisees the outer limit is 31/12/2011. A periodical report is to be sent to the Regional Office of the Reserve Bank concerned.

The Memorandum of Instructions governing money changing activities, are contained in A. P. (DIR Series) Circular No. 57 [A.P. (FL/RL Series) Circular No. 04] dated March 9, 2009

In all there are 4 changes to the instructions.

All the other instructions contained in the A.P.(DIR Series) Circular No.57 {A.P.(FL/RL Series ) Circular No.4} dated March 9, 2009 shall remain unchanged.

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